A more thorough explanation:

Conversion value refers to the value of a convertible security as common stock. When a convertible security, such as a bond, can be exchanged for a certain number of shares of common stock, the conversion value is the total value of those shares.

If a bond can be converted into 10 shares of stock, and each share is worth $40, then the conversion value of the bond is $400 (10 shares x $40 per share).

Another example could be a convertible preferred stock that can be exchanged for common stock. If the preferred stock can be converted into 100 shares of common stock, and each share of common stock is worth $20, then the conversion value of the preferred stock is $2,000 (100 shares x $20 per share).

These examples illustrate how the conversion value is calculated based on the number of shares that can be obtained through conversion and the current market value of those shares.